Gold and Silver Industry & Investing News

As gold reaches a record $2,900 per ounce, defying traditional market logic about interest rates and dollar strength, silver is emerging as an attractive alternative investment. Unlike gold, which sees only 6% industrial demand, over half of silver consumption comes from industrial applications, particularly in growing sectors like renewable energy, AI, electronics, and medical equipment. Despite having historically traded at a 15:1 ratio with gold based on natural abundance, silver now trades at 100:1, suggesting potential undervaluation.

Hong Kong’s jewelry shops are experiencing a surge in activity as gold prices hit new record highs this week. While many residents rush to sell their gold for substantial profits – up to 63% for those who bought in October 2023 – others, particularly mainland Chinese couples planning weddings, are buying despite high prices. Some analysts now predict gold could reach $3,400 this year, driven by central bank buying and inflation concerns.

Treasury Secretary Scott Bessent has announced that the US is expanding its trade policy focus to include currency manipulation alongside tariffs. The announcement comes as the administration develops plans for reciprocal tariffs by April 1st, with Bessent emphasizing that while the US maintains a strong dollar policy, it won’t accept other nations deliberately weakening their currencies for trade advantage. The Treasury’s review will create what Bessent calls a “reciprocal index” that examines three key factors for each trading partner: existing tariffs, non-tariff barriers, and currency manipulation practices. This comprehensive approach represents a significant shift in US trade strategy, with Bessent...

Precious metals are rallying strongly as investors seek safe havens amid growing trade tensions. Silver has surged to its highest level since October, climbing 3.1% to over $33 per ounce, while gold continues its longest winning streak since August 2020 with seven straight weeks of gains. The surge follows President Trump’s order for new country-specific tariffs, adding to his existing 10% levies on Chinese goods and planned 25% duties on steel and aluminum imports. The metals’ strong performance is supported by multiple factors beyond trade concerns. Central banks, particularly China’s, have been increasing their gold reserves, while investors have been...

A rare disconnect in global gold markets is forcing major banks to take extraordinary measures, flying billions of dollars worth of physical gold from London to New York. The situation emerged after Trump’s tariff threats against Europe caused London’s physical gold prices to trade about $20 lower than New York’s futures market since December. This price gap has put pressure on banks like JPMorgan and HSBC, who typically hold gold in London while selling futures contracts in New York as a hedging strategy. With gold futures rising 11% this year to $2,909 per ounce and potentially approaching $3,000, banks are...

Gold continued its impressive rally, marking its seventh consecutive weekly gain amid escalating trade war concerns. The precious metal rose 0.3% to $2,936.99 per ounce, bringing its weekly advance to 2.6%. President Trump’s recent call for reciprocal tariffs and ongoing economic uncertainty have strengthened gold’s appeal as a safe-haven asset, with analysts eyeing the $3,000 mark as the next significant target.

A panel of prominent gold market authorities, led by LBMA Chief Executive Ruth Crowell and featuring industry experts Adrian Ash, Jim Steele, David Gono, and Jeremy East, convened to examine the complex relationship between London and New York gold markets. The discussion focused on addressing crucial questions about market operations and investigating concerns regarding physical gold supply, providing insights into the current state of global gold trading.

The gold-silver ratio represents how many ounces of silver it takes to purchase one ounce of gold. For example, if gold is at $2,920 per ounce and silver is at $32.20 per ounce, the ratio would be approximately 90:1 (2920 ÷ 32.20 = 90.68). Traders often use this ratio as a tool for understanding relative value and potential trading opportunities. When the ratio is historically high (above 80:1), some traders view silver as undervalued relative to gold and consider buying silver while selling gold. Conversely, when the ratio is low (below 50:1), they might buy gold and sell silver. Historically,...

The British pound strengthened to $1.25155 after unexpected GDP growth of 0.1% in Q4 2023, defying economists’ predictions of a contraction. However, analysts caution that the growth was primarily driven by volatile inventory changes, while key economic indicators like household consumption and business investment remained flat or negative, suggesting underlying weakness in the UK economy.